Directional Movement Index (DMI)

Predictions

Directional Movement Index (DMI)

The Directional Movement Index (DMI) is actually a collection of three separate indicators combined into one. Directional Movement consists of the Average Directional Index (ADX), Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). DMI's purpose is to define whether or not there is a trend present. It does not take direction into account at all. The other two indicators (+DI and -DI) are used to complement the ADX. They serve the purpose of determining trend direction. By combining all three, a technical analyst has a way of determining and measuring a trend's strength as well as its direction.

Price and RSI formed a bearish divergence at the strong resistance level. It's a reversal signal and we have short opportunity. Entry level for short trades should be below MA20 if the market breaks this line. Stop orders must be placed above 112.00 level and take-profit orders near 110.500 and 110.00 support levels. MACD histogram is going to confirm down ...

Price tried to pass throught the kumo but a bearish candle shows us a possible price reversal. Any way this up movement gives us a possible entry level for long trades, if the market decides to move higher. DMI confirms trend market conditions and the up movement. Entry level for long trades should be above 1.12250 with stop below the kumo. Take-profit orders ...

Let's think about possible entry levels using MA indicators and support levels. We can see how the market moves to the possible reversal levels. DMI indicator shows trend market conditions but ADX line falls and it tells us that we should not expect strong up movement within several days. MACD also confirms down movement. RSI falls to the oversold zone and we ...

Price reverses from the kumo and RSI confirms it. We can have a down movement and it's time to place sell-stop orders. Entry level for short trades should be below 1.27000 with stop above 1.27600 level. Profit target is at the support level. DMI indicator shows range market conditions and we should not expect for strong price movements. That's why using ...

Let's look at the daily chart of BCNBTC and try to understand how we should trade this pair. We have to note that the market is in an up trend but presently we can see a correction wave. It's confirmed by price movement between the resistance and the support levels and DMI indicator. It will be correctly to wait for a new impulse wave and only after that join the ...

The market reached the whole number level 0.15000 and we could see a price reversal. A bearish divergence confirmed down movement to MA20 as a possible reversal level. But price broke this line and moved lower. Now we have a situation where price is below MA20 and there is a free space for falling. MACD confirms down movement and DMI also shows that we should not ...

The market is going to bounce from Kijun and the uptrend line. We can have a possible buy signal and we must think about entry level. The resistance level 22.00 can be a place where the market will be stopped and reversed again. That's why buying not far from the resistance level it's not a good idea. So it will be logical to open long trades if price breaks this ...

If price bounces from Kijun line and RSI confirms price reversal, we'll have long opportunity. Entry level for buy trades must be above 0.130 with stop orders below 0.108 level. Profit target for long trades should be at the resistance level. DMI confirms trend market conditions and allows trading.

During the past several weeks, I've noticed something evolve in crude oil on the daily ADX called a 'change in dominance'. This is where the ADX is above 20 and the +/-DMI swap dominance resulting is a 'V' type ending to a trend. The setup for the pattern was an ADX reading below 20 resulting in a consolidation in price. Then, price broke out and ADX began to ...

Copper Weekly – At the beginning of 2011, Copper made a directional change and has fallen more than 50% to date. However, with the copper demand growing, the commodity could be ready to make its next directional change in the coming months. China, the largest consumer of copper, is seeing its economy stabilising once again after suffering during the first half of ...

The practice already tells us that the Vix not last long at these levels, now looking for when it will move.
Relative Volatility Index: shows a pattern that previously led to the movement.
Directional Movement: DI + moves easily over 20 (24.66).
Bollinger / Kelner: The narrowing of the Bollinger Bands, penetrating moments in the Kellner brings us closer to a ...

Encana Corp has recently broken a resistance line and a year long downtrend line this year. After being up the past few months, it is continuing to look bullish. It has just had a two month consolidation period and is ready for the next leg up. The price has moved above the 20MA (which it respected during the downtrend) and the 50MA. Additionally, the Directional ...

The decade of bull run from ~$260 in 2001 to $1920 in 2011 (6X) on back of safe haven buying and an investment asset class ended with revival in major global indices and on track economies. The 5 years of slow and steady pain from 2011 to 2016 where gold lost 45% of its glittering from its peak might come to an end. We might witness the resumption in the bullish ...